Operator News
Singapore – Resorts World Sentosa sees huge swing into profit
By Phil - 24 February 2017
A remodelling of its commission and bad debt structure has seen Genting Singapore post net profits of $159.2m in the fourth quarter, up from a new loss of $7.8m in the same period last year.
Its Resorts World Sentosa shrank its bad debt by 14 per cent to $38.9m as the group continued to tighten its credit policy for the VIP gaming business.
The company’s GGR for the three months to December 31 increased by two per cent to $557.7m although non-gaming revenue fell by eight per cent to $158.5m.
Genting’s attractions business received around 18,000 daily visits whilst the hotels were 92 per cent full.
Despite revenue for the full year falling by seven per cent to $2.23bn, full-year net profit more than trebled to $266.3m.
The company stated: “Despite a challenging operating environment, the Group continued to produce a strong set of financial results and demonstrated creditable resilience in all its businesses for the fourth quarter of 2016. The Group delivered 29 per cent year-on-year growth in Adjusted Earnings before 3.7m, a significant improvement of 30 per cent as compared to the fourth quarter of 2015. This achievement was largely contributed by higher gaming revenue as a result of higher rolling win percentage in the premium player business and the revised strategy to focus on better margin business. In the financial year 2016, the Group achieved a net profit after taxation of $384.5 million, almost double the previous financial year. With ongoing uncertainty in the macroeconomic and political environment, coupled with a difficult Asian gaming market, we continue to adopt a measured approach in the VIP gaming business. The impairment of receivables relating to this business segment has reduced since we calibrated our credit policies and remodeled our commission structure. We have seen our profit margins improve in this segment.
“Coupled with our marketing focus on growing regional premium mass business, we are optimistic in delivering sustainable earnings growth. However, with the uncertain global political setting and its attendant effect that creates a volatile exchange rate regime, our marketing programs may be negatively impacted. RWS has been a success story. We have continually refreshed our entertainment and visitor experiences, created new signature dining and marquee events and attracted more than 20 million visitors a year from across the region.”
Resorts World Sentosa remains behind Marina Bay Sands though.
Last month Sands posted a net profit of US$366m (S$519m) for the fourth quarter, up eight per cent on the US$339m recorded a year earlier. Revenue increased by 2.8 per cent to US$723m, compared to Resort World’s $557.7m.
